Obama Proposal for Mortgage Refinance Plan for Homeowners in South Jersey

President Obama has put together a proposal for homeowners trying to refinance.  In South Jersey, as well as many other markets, many borrowers have not been able to refinance due to little to no equity in the home coupled with decreasing property values.

How Will the Plan Help Homeowners in South Jersey?

If this proposal is approved, it will help borrowers reduce monthly payments and make it easier for homeowners who have been paying their mortgage, but otherwise unable to refinance due to decreasing property value.

Who Will Qualify in South Jersey?

In South Jersey, as well as any part of the country, Obama’s proposal includes a few stipulations.  In order to qualify for the proposed plan, homeowners will have to have a credit score above 580 and up to date on mortgage payments for the last 6 months.  If approved, all types of loans will be able to be refinanced including government backed and private funding.

Approval Process and Cost to Tax Payers

Currently, Obama is seeking approval from congress.  If approved, this plan would cost tax payers between $5 and $10 billion dollars.  Obama plans to tax financial institutions as well as several other resources in order to fund the program.  With many pros for distressed homeowners in South Jersey, there are just as many cons from the Republican Party.  For more information on the full story, please see article from the Washington Post.

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